Martin Cullen (Waterford, Fianna Fail)

——along with Dublin and should be seen as such. We need to avoid the ether and deal with the facts of what we are trying to achieve. I hope I can demonstrate clearly to the House that there is no equivocation on my part. There are issues that must be dealt with fairly to the advantage of Cork, Shannon and Dublin airports. That is where we currently stand.

Senators have referred to the fact that the three airports have made significant advances in this Government's period in office. All three airports showed record traffic growth last year with passenger numbers of over 18.5 million for Dublin, 3.3 million in Shannon and 2.7 million in Cork. That represents a growth of approximately 8% for Dublin, 38% for Shannon and 21% for Cork. It is clear that the new boards at Shannon and Cork, in conjunction with the DAA, are bringing a new impetus to the development and growth of their airports.

The State Airports Act 2004 provided a new opportunity to the State airports to grow and develop with an invigorated commercial mandate. It paved the way for the establishment of three State airports. I believe in State airports, by the way. I have a clear view on fixed assets in this country remaining in State hands. I have stated that repeatedly and it is a view I hold dear. Others may have different views but my view should not be confused in this regard because it has been unequivocal. My track record on the development of Dublin Airport clearly demonstrates my view in that respect.

The Act provides a framework to allow for an orderly approach to the distribution of the assets of Shannon and Cork airports in conformity with capital maintenance and other provisions of the Companies Acts. I am surprised that some Senators may say we will ignore the Companies Acts when we talk about our business but we will make them apply very strongly to the private sector. That is a nonsense and would be unacceptable by international standards. We do not want another WorldCom or whatever coming into this country. I will not, and would not, preside over some way of bypassing or getting around the Companies Acts. National and international law is clear. I will ensure that State and private sector companies adhere to the highest standards of international practice of company law. There is no separate company law for State companies and private sector companies. As long as this Government is in power company law will apply across the board and the standards will be the highest possible.

The boards of Cork and Shannon airports are charged with preparing to assume responsibility for the ownership and development of the airports. They are also empowered to undertake certain management and operational functions which they have done successfully. Under the Act, before any assets can transfer to Shannon or Cork, the Minister for Finance and I must be satisfied as to the financial and operational readiness of the airport authorities.

I have no interest in going forward with a proposal that would in any way undermine Cork Airport. The opposite is the case. My job is to ensure that Cork and Shannon airports are set off with the strongest possible, viable commercial mandate for their future development. That is the only agenda that the Government and I wish to pursue. Therefore, each authority is required to prepare a comprehensive business plan and obtain our approval for these plans before any assets can be transferred.

The three State airport authorities continue to work on the preparation of their business plans with the Dublin Airport Authority. I accept that this entails difficulties. Everybody has a view and seeks the best outcome from his or her perspective, which is reasonable and understandable. We must reach a point at which we focus on the reality of what we are trying to achieve and make sure we have good outcomes for all the airports.

A range of issues need to be considered, including the unsustainable cost base at Shannon which has been acknowledged by all involved there; the recent airport charges determination for Dublin Airport by the Commission for Aviation Regulation; and the optimum mechanisms for the financing of the new terminal in Cork. The Commissioner for Aviation Regulation made clear that he will not allow a charging regime at Dublin Airport to cover the costs of Cork or any other airport. That is the law within which we must operate. Some might argue that of course he would say that because it would be unfair for passengers in Dublin Airport to pay for passengers in other airports. We must, however, strike a balance of fairness, based on good commercial outcomes for all the airports.

The airport authorities must consider these complex issues. I have not set any artificial deadlines for the completion of the process. My Department will continue to liaise with the boards on the business planning timetables, taking account of the key issues I have mentioned. I look forward to the finalisation of the business planning process because of its importance to facilitating the development of dynamic, independent and financially sustainable State airports.

A core principle of the Government objective in airport restructuring is that this must be achieved in a manner which underpins the financial sustainability of all three State airports. Cork Airport is being transformed by the development project nearing completion which will effectively deliver a new landside airport for Cork. This is the first major upgrading of all its facilities since the airport was built in the late 1950s.

The figure of €140 million has been bandied about here tonight. This is a new figure to me. I have never articulated it but it has suddenly emerged. The debt for Cork Airport will be approximately €200 million, inclusive of the new terminal, which is a great deal more than €140 million. I have never said and nobody in my Department or the Government has said €140 million or that Cork Airport was being saddled with the full cost of the terminal. That is not the position.